Buying vs. Renting? What is Better For You?

Homeownership is the American Dream, right? Owning a place to call home, paint the walls purple if you like, that’s what everyone wants. Isn’t it? The reality is there are pros and cons to buying a house. Understanding them can help you make the best decision for your goals.

Pros for Buying

There are three main reasons to buy a home.

  1. Financial Advantages – A home is an asset that should appreciate over time, providing wealth-building opportunities.
  2. Pride of Ownership – As a homeowner, you control the environment in which you live. If you want those purple walls or granite countertop, you can do it.
  3. Roots – Regardless of whether you have children, there is a natural desire to be part of a community: to have a local coffee shop, dry cleaners, etc.

Cons for Buying

As with all things, there are considerations which mean this isn’t the right time to buy a home.

  1. Increased Monthly Costs – While not always the case, in most instances, your monthly mortgage will be larger than comparable rent.
  2. Freedom – A renter can move from one city or state to another quickly, allowing you to move when you need or want to.
  3. Upkeep – You are responsible for the repairs and maintenance of the property. Unexpected problems can become quite expensive if you are unprepared.

There are some excellent reasons to buy a home; before you decide that it’s time to buy, give some thought to your lifestyle and goals if they are in line with the advantages of homeownership, then time to go house hunting.